Company OverviewAugust 2019www.ADOMANIelectric.com
“Providinghealthierair forallwhile reducingdependencyon fossil fuels.”
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This presentation has been prepared by ADOMANI, Inc. (the “Company”) for discussion purposes only and should not be considered as an offer or invitation to subscribe for or purchase any securities in the Company or as an inducement to make an offer or invitation with respect to those securities. No agreement to subscribe for securities in the Company will be entered into on the basis of this presentation or any information, opinions, or conclusions expressed in the course of this presentation. This presentation is not a prospectus or other offering document under U.S. law or under any other law. This presentation contains general summary information and does not take into account the investment objectives, financial situation, and particular needs of any individual investor.
This presentation contains, in addition to historical information, certain forward-looking statements that are based the Company's current assumptions, expectations and projections about future performance and events. In particular, statements regarding future economic performance, finances, and expectations and objectives of management constitute forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical facts and generally contain words such as “believes,” “expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates,” “anticipates,” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters.
Although the forward-looking statements contained in this presentation are based upon information available at the time the statements are made and reflect the best judgment of the Company's management, forward-looking statements inherently involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to differ materially from anticipated future results. Any forward looking statements made in this presentation speak only as of the date on which it is made. The Company is under no duty to update any of these forward-looking statements after the date of this presentation to conform these statements to actual results or revised expectations.
For historical information relating to the Company, you should consider the information contained in our filings with the U.S. Securities and Exchange Commission, (“SEC”), including our Annual Report on Form 10-K for the year ended December 31, 2018, and particularly in the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors,” as well as the Company's subsequent filings with the SEC. Other unknown or unpredictable factors also could have material adverse effects on the Company's future results, performance or achievements.
This presentation also contains estimates and other statistical data made by independent parties and by the Company relating to market size and growth and other data about the Company's industry. This data involves a number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. In addition, projections, assumptions and estimates of the Company's future performance and the future performance of the markets in which the Company operates are necessarily subject to a high degree of uncertainty and risk.
By attending or receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and the Company's market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of the Company's business. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Company's capital stock in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Disclaimer
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About ADOMANI®
ADOMANI, Inc. is a provider of zero-emission electric and hybrid vehicle drivetrain systems for integration in new school buses and medium to heavy-duty commercial fleet vehicles, as well as re-power conversion kits for the replacement of drivetrain systems in combustion-powered vehicles. ADOMANI is also a provider of new zero-emission electric and hybrid vehicles focused on reducing the total cost of vehicle ownership and helps fleet operators unlock the benefits of green technology and address the challenges of traditional fuel price instability and local, state and federal environmental regulatory compliance.
For more information, visit: www.ADOMANIelectric.com
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Target Industries and Market Segments
UtilitiesConstruction
Delivery
Service & Delivery Fleets
Freight & Logistic Fleets
Warehouse Operators
Public & Private Schools
State, City, and Counties
Oil, Gas & Mining
Agriculture FarmingHeavy Duty Trucks
Medium Duty Trucks, Cargo Vans, & Shuttles
Port Vehicles
Forklifts
School Buses
Transit Vehicles
Haul Trucks
Tractors
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Approximately 2.9 million Class 3-5 trucks in US Market (A)
Approximately 1.5 million Class 6-7 trucks in US Market (A)
Class 3 truck sales were approximately 301,000 units in US & Canada Market in 2018 (B)(C)
Class 4-7 truck saleswere approximately 237,000 units in US & Canada Market in 2018 (B)(C)
Segment Advantages – Medium Duty Trucks
(A)
(B)(C)
http://cv.informa.com/wp-content/uploads/Fleet-Owner-Solutions-Guide-2017.pdf
https://www.statista.com/statistics/261416/class-3-8-truck-sales-in-the-united-states/
https://cta.ornl.gov/vtmarketreport/pdf/chapter_4_heavy_trucks.pdf
https://www.trailer-bodybuilders.com/market-stats/december-bump-caps-2018-truck-sales-boom/gallery?slide=1
(D)
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Electric Fleet Value
• Conversion of older fleets to ZEVs or selecting new electric vehicles significantly reduces the major air pollutants (NOX, SOX, PM2.5, PM10, VOCs, and CO) that are emitted from traditional internal combustion engines.
• These air pollutants are linked to respiratory and cardiovascular diseases as well as premature deaths, especially in vulnerable populations like children and the elderly and cost billions / year.
• ZEVs directly enhance the health and well-being of drivers, passengers, and ultimately all of those who live and work in the communities where vehicles operate.
• Converting fleets to electric also helps providers stay compliant with current and potential future local, state, and federal environmental and emission regulations.
SOCIAL AND ENVIRONMENTAL HEALTH REASONS FOR ELECTRIC BUSES
• “Fueling” with electricity is less costly and the prices are more stable than traditional liquid or gaseous fuels. We estimate fleets may see up to $10,000-$12,000 reductions in fuel costs per year based on miles traveled and $3.78/gallon for cost of diesel.
• Overall maintenance costs and hazardous waste handling costs, such as those for oil changes and disposal, can be reduced or completely eliminated. We estimate first year maintenance cost savings are expected to be $2,000-$4,000 / year; $4,000-$6,000 / year thereafter.
• Many benefits from local air district, state and federal financial incentives in the form or rebates, tax credits or carbon credits make the purchase of ZEVs cost-effective, if available, and range from $20,000-$400,000 per vehicle. The amounts vary by vehicle and by state.
ECONOMIC REASONS FOR ELECTRIC BUSES
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Current Product Line - Up
Cargo Van CLASS 3 & 4 TRUCKS
CLASS 5 TRUCKS
NEV
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Coming Soon
CLASS 4 & 5TRUCK
e-trike
10 - METER PASS BUS = TBD
PASSENGER VAN
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Potential New Products
Short Rail Bed Van Cutaway Van Cutaway
Low Top Logistics Van High Top Logistics Van
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Potential New Products
Rideshare Passenger Van Utility Van with Extra Passenger Seating
Animal Services Vehicle HVAC/Utility Van
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Potential New Products
Type A School Bus Emergency Vehicle
Box/Food Service Van
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HVIP Truck Funding and Savings
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Class GVWR Non-Disadvantaged Community Disadvantaged Community
Class 3 10,001-14,000 $50,000 $55,000
Class 4 14,001-19,500 $80,000 $90,000
Class 5 19,501-26,000 $90,000 $100,000
Class 6 26,001-33,000 $95,000 $110,000
Maintenance Energy/Fuel/20,000 miles per year
Diesel $5,000 $14,440
Electric $1,000 $1,670
Savings $4,000 $12,770
Diesel vs. Electric Cost Savings
Electric Diesel/Gas
Class 4 Price $130,000 $65,000
HVIP Funding ($80,000) $0
Net $50,000 $65,000
Class 4 Electric Truck Purchase Cost vs. Diesel/Gas
Total - $16, 770 Year
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HVIP Truck TCO
Savings
Vehicle Cost $15,000
Maintenance $48,000
Energy $153,240
With HVIPSavings
Vehicle Cost ($65,000)
Maintenance $48,000
Energy $153,240
Without HVIP
Total Savings - $216,240* Total Savings- $136,240*
*Class 4 truck life expectancy estimated at 12-years.
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PUC and ADOMANI® Relationships
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22 STATES35 PUCs
Alabama Power
Arizona Public ServiceTucson Electric Power
PG&E*SDG&E*SCE*
Excel Energy
Exelon
Duke Energy*FP&L*TampaGulf Power
Georgia Power*
Avista Utilities
Ameren*Exelon*ComEd
AES*
Consumer EnergyDTE Energy
Ameren
Nevada Energy
PSE&GFirst Energy
Excel EnergyEl Paso Electric
Portland General Electric
ConEd*
Duke Energy*
AEP
Duke Energy*Santee Cooper
VT Energy Investment Corp.
Puget Sound Energy
*Potential Funding Areas
• Infrastructure• Battery Leasing• Subsidized Purchase Price• *S.C (20) buses & N.C. (100 buses)
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1st Half 2019 Review
SURGE
CARGO VAN
e-trike
CLASS 4 TRUCK
• Backlog of $10.7 million at June 30, 2019, which is expected to be delivered in 2019.
• Received initial order for four all-electric cargo vans in May from the County of Santa Clara. This order is included in the June 30, 2019 backlog number.
• Visited the Philippines and China in February; and China again in June and July, to assess opportunities, and are currently exploring prospective alliances. With assistance from Board member Jack Perkowski, through his JFP Holdings, Ltd., also strengthening our supply chain for all-electric vehicles.
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1st Half 2019 Review (continued)
• Showcased its all-electric commercial trucks and vans in California ride-and-drive events, including:Ø The annual Advanced Clean Transportation (ACT) Expo Ø The California Association of School Business Officials (CASBO) (van only) in April; and met with and demonstrated the vehicles to: LA
County Office of Education; Fresno Unified School District; Clovis USD, Bakersfield City school districts, the Kern County Superintendent of Schools, several Bay Area school districts, the San Joaquin Valley Air Pollution Control District, the Bay Area AQMD, a Pacific Gas & Electric OEM meeting, Los Angeles Department of Water and Power, the cities of Torrance and Long Beach, CA, and a number of private companies in the trucking industry.
Ø Additional demos will be conducted at the California Higher Education Sustainability Conference and the School Transportation News Expo events, both in July.
• Retained Roger Howsmon, a 40-year veteran of trucking and manufacturing industries, as an expert consultant to assist with sales and marketing efforts for its all-electric truck and van products and other new products.
• Presented at the Roth 2019 Conference in Laguna Beach, California in March.
• Entered into a mutual sales and marketing agreement with Zeem Solutions, a commercial electric vehicle (CEV) service provider. It is expected that Zeem will serve as an important sales representative and partner with respect to its all-electric truck and van products, including providing value-added support and service for ADOMANI’s products.
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1st Half 2019 Review (continued)
• Received initial order from GerWeiss EV USA LLC for zero-emission all-electric e-trikes, the three-wheeled vehicles widely used in the Philippines. The purchase order represents a revenue opportunity of approximately $1.7 million and will give ADOMANI access to amarket where approximately 3.5 million e-trikes are currently in service. The first 10 demo units are expected to be delivered in the 3rd
quarter.
• Entered into an exclusive two year sales and service agreement with Pro-Motive EV, LLC (Pro-Motive), a commercial electric vehicle (CEV) manufacturing and service provider, and with JFP Holdings, Ltd. (JFP), a company owned by Jack Perkowski, an ADOMANI Board member. The agreement initially covers the E-Riva Neighborhood Electric Vehicle (NEV), covers 9 states, and provides that ADOMANI will serve as the sales and service agent for the NEV, with Pro-Motive and JFP responsible for providing the vehicles.
• Expanded operations to include access to a 43,000 square foot facility in Downey, CA that provides space to conduct R & D activity; staging of materials, assembly and/or manufacturing, testing of demo vehicles, and secure storage of vehicles, equipment and finished inventory.
• Retained the services of Renmark Financial Communications Inc.to handle its investor relations activities.
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Revenue & Backlog
As of and for the year ended December 31, 2017
As of and for the year ended December 31, 2018
DOE $425,000 $974,192
Lion Bus - $225,000
Drivetrains - $3,800,000
Other - $12,296
Total $425,000 $5,011,485
Backlog $380,000 $8,574,154
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Revenue & Backlog (continued)
As of and for the three months ended
March 31, 2019
As of and for the six months endedJune 30, 2019
DOE $14,154 $14,154
Lion Bus - -
Drivetrains $380,000 $4,750,000
Other $26,166 $43,865
Total $420,320 $4,808,019
Backlog $12,944,154 $10,732,533
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Historic Net Loss - ConsolidatedYear ended December 31,
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Historic Balance Sheet - ConsolidatedDecember 31,
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Historic Operating Cash FlowsYear ended December 31,
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Share Structure & Related
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Analyst Summary
(A): AT 8/2/19(B): Assumes no additional deliveries
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Title Experience Description
Jim ReynoldsCEO, President
and Board Chairman
40+ years• Former CEO, President of A-Z Bus Sales, Inc., growing A-Z’s sales from $46M to $120M• Former Regional Manager of Tyco Corporation• BA Pepperdine University
Mike MenereyCFO, Secretary, Treasurer and
Board Member40+ years
• Former partner of CFO Edge, providing interim & project-related CFO services to clients• Former EVP, President, and COO of Mapleton Investments• Former EVP, CFO and Secretary of Falcon Communications• BA University of Michigan with distinction; CPA through November 2017
Rick Eckert Chief Operating Officer 30+ years
• Former General Manager of Operations for A-Z Bus Sales, Inc.• Former Co-Chair Blue Bird Dealer Service Council for Blue Bird Dealers nationwide • Mount San Antonio College, Walnut, CA
Kevin Kanning
Vice President, Business
Development and Investor Relations
30+ years• Served as Vice President and COO of Greentech Mining, Inc.• Previous roles with Voelker Sensors, Inc., Klever Technologies, Inc.• BS Haas School of Business, University of California Berkeley
Leadership Team
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Title Experience Description
Janet Boydell Board Member 10+ years
• Principal for VCA Code, a staffing agency• Former CEO, A Hire Connection, Inc., professional services firm providing strategic management consulting and retained executive search
services for C-Level functions, 2006 to 2015• Previously Assistant Controller in the field of investment banking• BBA Cal Poly Pomona
Gary W. Nettles Board Member 25+ years
• Currently COO, CFO and Director of Allen Tel Products, Inc., supplier and manufacturer of data and telecommunication components• CPA and President of Guchereau & Nettles, accounting firm, 1987 to 2003• Former Board Member, Cost-U-Less, Inc.• BS United States International University, San Diego, CA, Magna Cum Laude
Jack Perkowski Board Member 20+ years
• Founder and Managing Partner of JFP Holdings, Ltd., a Beijing-based merchant banking firm formed in 2009 to assist Western companies to penetrate the China market and help Chinese companies expand abroad.
• Former CEO for Green4U Technologies, Inc., a Georgia-based company founded to meet the growing demand for electric vehicles• Former CEO & Chairman of ASIMCO Technologies - China’s first independent international automotive components manufacturer
headquartered in Beijing. • MBA Harvard Business School; BA Yale University
Board of Directors
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Why Invest in ADOMANI (ADOM)?• One of few companies in the US who have actually delivered zero-emission all-electric products to customers and have
inventory on hand and/or being produced for future sales orders, vs many who are at the prototype stage.
• Zero-emission all electric vehicles will be a significant percentage of vehicles in use in California and many other states due to Federal and State mandates, legislation and significant funding programs that encourage early adoption. Our team is very familiar with the funding agencies and processes.
• Primary target market moving forward is medium duty trucks, cargo vans and related vehicles. There were approximately 538,000 Class 3 to Class7 vehicles sold in the US and Canada in 2018; a small percentage is all that’s needed to succeed. Vehicles being built and offered for sale are purpose-built from the ground up and are NOT conversions.
• Strong team led by Jim Reynolds; very experienced in the transportation industries, with significant sales and marketing expertise generally, and specifically in selling alternative fuel commercial vehicles. Team also includes third parties RogerHowsmon and Zeem Solutions.
• Attractive entry point at current stock price. Two analysts following ADOM have price targets of $1.00 and $3.00 per share.
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Contact Informationwww.ADOMANIelectric.com
OTCQX: ADOMInvestor Relations Contacts:
ADOMANI, Inc.
Kevin Kanning, VP Investor RelationsTelephone: (650) 533-7629Email: [email protected]
Michael K. Menerey, Chief Financial OfficerTelephone: (951) 407-9860 ext. 205Email: [email protected]
Renmark Financial Communications, Inc.Joshua Lavers: [email protected]: (416) 644-2020, ext. 3409 or (514) 939-3989
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A Domani
Until Tomorrow!
“Never put off until tomorrow what you can do today.”- Benjamin Franklin